The new law allows individuals with no commercial registration to practice business in the e-commerce space
Saudi Arabia’s approval of the new e-commerce law will strengthen the kingdom’s national economy, according to the Minister of Commerce and Investment Majed Al-Qasabi, reported the Saudi Gazette.
The new law allows individuals with no commercial registration to practice business in the e-commerce space in line with certain regulations which protect consumer rights.
However, they are required to identify their place of business, ensure consumer data protection and privacy and document all business activities.
“The law aims to enhance the reliability of business transactions, stimulate and develop e-commerce activities and protect all rights of consumers and safeguard them from fraud, deception…” Al-Qasabi said, adding that it includes 26 articles that protect both consumers and e-traders from fraud.
Under the new legislation, service providers are requested to disclose trade, goods and services data to consumers, guarantee consumer rights, protect personal data, address product delivery delays, and regulate censorship of e-commerce advertising to prevent fraud.
It also gives consumers the right to return a product or service within seven days under certain circumstances, and cancel the purchase if delivery is delayed beyond 15 days.
The Council of Ministers had earlier approved the establishment of an e-commerce board comprising government and private sector representatives responsible for implementing 39 initiatives supporting the sector.
The law also requires the formation of one or more committees to monitor violations and apply penalties or fines of up to SR1 million ($267,000).